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A Spotlight On IAR Systems Group AB (publ)'s (STO:IAR B) Fundamentals

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I've been keeping an eye on IAR Systems Group AB (publ) (STO:IAR B) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe IAR B has a lot to offer. Basically, it is a financially-sound company with an impressive history of dividend payments and a buoyant growth outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on IAR Systems Group here.

Investors seeking high cash growth potential should consider IAR B, with forecasted operating cash flow growth of 93%. This underlies the notable 23% return on equity over the next few years leading up to 2022. IAR B's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that IAR B manages its cash and cost levels well, which is a key determinant of the company’s health. IAR B currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.